Do you have a mis sold payment protection insurance policy?

Payment protection insurance could pass as the most popular type of insurance nowadays. Unfortunately, it seems that it is now more popular because of the issues that it is involved in rather than the idea that it is indeed a good type of insurance. PPI has been a subject of widespread curiosity and interest among individuals who felt worried and apprehensive about whether or not they have a missold PPI themselves. Misselling of PPI policies and missold PPIs, by the way, are the two terms connected to  the issues revolving around PPI. In this article, you will learn more about what PPI really is, why mis sold PPI has created such a ruckus and how to file ppi claims.

Payment protection insurance, most commonly called as PPI, is basically a loan payment insurance. The main concept behind PPI is that it is designed to pay for your financial obligations once the time comes when you cannot pay for it yourself. This would happen if you happen to lose your job which is your bread and butter, your primary source of monthly sustenance. Once proved that your claim for the insurance coverage is valid, then you would not have to worry about payments for your loan, debt, or credit until the moment you find a new job again. However, if the coverage term has already been fulfilled by the insurance and you have not found a job yet, then you would need to look for a way to pay for your bills. Otherwise, your loan accounts could be canceled and anything that you have loaned might be taken back by the loan company.

Basically, you have to be a regular employee before you get the chance of acquiring a payment protection insurance policy. Thus, claiming for the coverage is only applicable if the insurance company proves that you did not intend to resign from your job just to be able to make use of the insurance coverage. The insurance company would eventually perform an inspection or investigation to know if the reason for your job loss is valid. Valid reasons would be: untimely health failure, serious accident, or involuntary resignation – all of which could make you unable to work for a certain period of time.

Payment protection insurance can be taken out on almost every type of financial products including car loans, mortgage loans and credit cards, for example. Indeed, having a PPI policy to cover for your important credits and loans is a good thing. However, PPI has had a lot of negative press. This is because of the issue of PPI misselling.

Misselling of payment protection insurance policies happen when agents failed to properly explain the nature of the policy. The following are some of the most common situations that a PPI could end up being a missold one:

• If PPI was automatically added to the loan or credit card.
• If the lender failed to tell you that it was optional.
• If the agents pressured the customer into taking out the policy in any way possible.
• If the agents implied that the loans approval would take longer if the insurance policy is not taken out.
• If the agents implied that they would help the customers in the fast approval of their loan if they agree to take out the insurance policy.

If you have acquired a loan, debt, or credit card in the past few years, you might want to check if you have acquired a missold payment protection insurance policy along with the loan. To help you determine if you actually have one, you could seek the services of PPI claims specialists and experts. They can advise you on what you should do in order to claim back PPI.

How to claim PPI refunds

Payment protection insurance is an individual financial product sold mostly in the UK. It is an insurance that covers one’s debt repayments for 12 months. The types of debt repayment that can be covered by the PPI are loans, mortgages, and credit card payments. The condition for the debt repayment coverage is when the holder of the policy becomes unable to pay for the PPI due to sickness, accident, unemployement, or death. PPI is also known as mortgage payment protection, accident unemployment and sickness insurance, and personal loan protection. Some people are confused about what is PPI or not. To avoid confusion, when you have any type of loan and an insurance product that covers its repayments, the insurance product is known as PPI.

Where to get PPI

Usually, banks are the ones who sell people PPI, however, they can also be bought from insurance companies. In the past, banks have sold PPI as attachments and compulsory requirement to people who were taking out loans and mortgages, including credit cards.

What is the PPI Controversy in the UK?

The main concern that people have about PPI claims is that they were mis-sold the insurance product by the banks. Many people in the UK are not aware they were sold payment protection insurance because they thought the product was actually part of the loans and mortgages they were applying for. Some people even paid in lump sum for the PPI the banks sold them, thinking that they were paying for part of the principal or interest in the loan or mortgage.

When people found out about the PPI mis-selling, consumer groups began to organize themselves against banks who mis-sold the insurance product. According to them, PPI should not be forced into people; they should first conduct a basic background check of people to find out whether or not they need the PPI. According to the Financial Services Authority or FSA, more than 90% of PPI holders will never be able to benefit from the mis sold PPI policies they paid for.

How to Claim PPI Refunds

Ideally, to claim a refund of PPI policy, the person needs to go to the bank where the policy originated. However, this could take a lot of time because the banks themselves are under intense pressure from consumers who want to make PPI refunds. An estimated 3 million PPI complaints could be in line at the banks and government institutions.

If the banks are proving difficult to press, you can file complaints at the Financial Ombudsman Service or FOS. According to the FOS, it is having a difficult time processing all the complaints that have surged. Some people are made to wait for as much as two years before the FOS is able to take a look at their cases. On the bright side, an estimated 80% of PPI complainants are awarded the rights to a claim or refund.

Claims companies are also a popular alternative to banks and the FOS when people want to reclaim ppi. Claims companies will see if a PPI holder is eligible for a refund by making them fill out forms. Claims companies will sometimes file the case in the small courts, and demand from the banks to refund the holders PPI. The good thing about claims companies is that they have legal experts who specialise in financial disputes. Claims companies will also go after banks and financial institutions who are proven to have abused the rights of the consumer.

On the part of the PPI holder, they must be able to present proof that they were sold PPI. They must keep their PPI contracts for verification purposes. If the PPI holder was sick, unemployed, retired, and self-employed during the time they were sold PPI, then they may be eligible for a refund.

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